Fraud can quickly take down a successful business, or at the very least create significant issues for you to deal with. As a business owner, it’s important that you know how to watch for fraudulent activities by your employees. Here are a few tips for approaching the subject in your business:
Be careful who you hire
Preventing fraud begins before you even hire your employees. As you work through the selection process, be sure to investigate your potential hires, especially those who deal with finances. You can use a background check, credit report and social media check to look for any red flags.
Protect your business with anti-fraud policies
You should always have company policies in place that state that fraud is not accepted and that includes specific procedures to help prevent and deal with fraud.
Consistent analysis
Use data analysis to double-check the transactions of your business. This can help catch any errors or possible instances of fraud.
Educate your employees
Though you may have the definition of fraud and your stance against it in your company policies, that doesn’t mean that your employees are aware. Especially for new hires, create fraud education and training for them to complete.
Make it easy for whistleblowers to come forward
Create a company culture that is honest and open. This can help draw employees who are willing to call out fraud when they see it. Create procedures that allow whistleblowers to feel safe coming forward and reporting misconduct.
Watch for red flags
As an employer, it’s important to keep an eye on your employees. You have a unique opportunity to spot red flags like employees that live beyond their means or have significant financial struggles.
Don’t let any suspicious activity slide. Be sure to quickly and thoroughly address anything that you notice that could be indicative of fraud.
© 2020 by Raymond Law Group LLC.
